Market Analysis

Bonds are improved this morning but so far that improvement has not flowed through to mortgage rate sheets. It is possible if momentum can build during the day we will receive updated rate sheets during the day.

Below is a recap of this week’s economic calendar:

Monday, June 28, 2010

• May Personal Income – up .4% vs expectations for a .5% increase and a similar .5% increase in April.
• May Personal Spending – up .2% vs expectations for a .1% increase and a 0% change in April.
• PCE (Personal Consumption Expenditure) Index – this measure of inflation at the consumer level came in up .2% vs expectations of a .1% increase and a .1% increase in April.

Tuesday, June 29, 2010

• June Consumer Confidence – expected 62.0 index vs 63.3 in May.

Wednesday, June 30, 2010

• June ADP Employment Change (private sector) – expected increase in private sector jobs of 61,000 vs 55,000 increase in May
• June Chicago PMI (Purchasing Mgrs Index) – expected 59.0 reading vs 59.7 in May.

Thursday, July 1, 2010

• Initial Jobless Claims week ended 6/26/10 – expected up 1,000 to 458,000 from 457,000 the prior week.
• Continuing Jobless Claims week ended 6/19/10 – expected down 38,000 to 4.510 million from 4.548 million the prior week.
• May Construction Spending – expected down .9% vs an increase of 2.7% in April
• June Institute of Supply Management Manufacturing Index – expected 59.0 reading vs 59.7 in May.
• May Pending Home Sales – expected down 10.5% vs a 6.0% increase in April.

Friday, July 2, 2010

• June Non Farm Paryolls - payrolls expected down 100,000 vs up 431,000 in May (primarily due to temp census workers)
• June Unemployment Rate – expected to increase to 9.8% vs 9.7% in May.